Some Basic Ingredients For A Contract

So what then are the conditions for a Contract to exist

?

The parties must intend that the Contract is legally binding, otherwise the Contract could be viewed as a formal version of a gentlemans agreement.

One party must make a definite offer where that party is willing to contract on specified terms. The other party must accept the offer. In construction related Contracts, disputes can arise if the offer is not properly defined by a complete specification and other supporting documents such as drawings and/or schedules, bills of quantities, such documents must be referred to in the Contract. There is often provision with many types of Construction Contract, to allow remuneration related to a variation of what was initially specified.

A purchase order is often regarded as a Contract. But if the buyer requests the seller to acknowledge the purchase order by returning the sellers own standard form rather than signing the purchase order, the sellers form might carry a set of conditions which conflict with the purchase order. It could then be argued that no Contract exists since neither party has formally accepted the others offer. In addition, in the event that a disagreement or dispute subsequently arises, it could also be argued unless rejected by the buyer, that the terms and conditions of the offer sent by the seller has validity over the terms and conditions of the purchase order.

Something worth checking is if the offer or acceptance made by either party is outside the scope of its powers, as defined for example in a companys Memorandum of Association, then that company has no power to make an offer or acceptance and the Contract can be void. Individuals who sign on behalf of a legal entity, must be duly authorized to represent that party in that capacity.

A Contract must result in each party undertaking to the other, a benefit. In construction Contracts, this usually means one party promises to deliver services by a specified date and the other party undertakes to pay for these services. If either party fails to meet their contractual undertakings to the other party, this can result in an action by the other party for a breach of the Contract. Depending on the breach of Contract, remedies could be damages or monetary compensation or specific performance of the Contract or an injunction.

In short, the four basic ingredients to include in a Contract are the parties names, the intention of the Contract, timeframe, and the price.

by: Kile

POST COMMENT

Great Taste, All-natural, High Quality Ingredients: Beefeaters Natural Dog Chews Have It All Key Ingredients Of A Proficient Orange County Dentist Kitchen Scale Is Used For Weighing Ingredients Pure Ingredients Of Oxygen Botanicals Nature Provides Best Ingredients For Anti-aging Skin Car Proven Effectiveness Of Hydroxatone Ingredients Makes All The Difference How To Buy French Ingredients Without Speaking French How To Avoid Harmful Sun Cream Ingredients Products Made With Natural Ingredients Skin Care Products The Shifting Preference For Natural Ingredients The Best Stretch Marks Cream Has Powerful Ingredients For Visible Results Anti-aging Creams - What Do Those Ingredients Do For Your Wrinkles Anyway? What Are The Best Daily Serum Ingredients